Abu Dhabi Ports Sees More Debt Sales for Growth After First Bond - Bloomberg
Abu Dhabi Ports Co. plans to sell more debt to support investment after a debut bond of $1 billion on Wednesday.
The government-owned port operator in the capital of the United Arab Emirates will look at a mix of loans, bonds and sukuk as well as potential cash injections from its owner to fund growth, Chief Financial Officer Martin Aarup said in an interview. The company is planning $4.2 billion in investment over the next five years and could spend more on acquisitions, he added.
Demand for the bond, which was about 4.5 times oversubscribed, “reflects international confidence in the strength of our business and our strategy,” Abu Dhabi Ports Chairman Falah Mohamed Al Ahbabi said in a statement. The debut sale will also help the country push to diversify its economy and funding sources, he said.
The UAE, the third-biggest producer in the Organization of Petroleum Exporting Countries, has used its oil wealth to broaden its economy, diversifying into industries like tourism and developing global transport and trade hubs. Those businesses suffered last year as the coronavirus pandemic slashed energy use, cut air travel and blocked trade flows.
Volume handled by Abu Dhabi Ports, which is owned by government investment company ADQ, has largely returned to levels seen before the pandemic, said Ross Thompson, the port operator’s chief strategy officer. Visits by cruise lines and shipments of new cars are still below pre-pandemic levels and likely to remain subdued for a while longer, he said.
Abu Dhabi Ports boosted sales by 24% last year to $933 million. Adjusted earnings before interest, tax, depreciation and amortization rose 37% to $422 million.
The company aims to continue growing at double digit rates, Aarup said. It has no plans to sell shares to investors and can fund investment with cash flow, debt and additional equity from ADQ.
Thursday 29 April 2021
#SaudiArabia Considers Starting a Homegrown Electric-Car Maker - Bloomberg
Saudi Arabia Considers Starting a Homegrown Electric-Car Maker - Bloomberg
Saudi Arabia has hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker, according to people familiar with the matter.
The project is linked to existing plans to build up automotive infrastructure in the country and boost local manufacturing, said the people, who asked not to be identified because the deliberations aren’t public.
A spokesperson for Saudi Arabia’s sovereign-wealth fund said it is committed to stoking growth and diversifying the kingdom’s oil-reliant economy while declining to comment on specific projects.
The $400 billion Public Investment Fund has been active in the electric-vehicle space going back several years. It acquired a small stake in Tesla Inc. in 2018, and officials discussed supporting Elon Musk’s efforts to take the company private until the chief executive officer tweeted about his ambitions. The PIF sold almost all its Tesla shares before an epic rally that began in late 2019, though it’s now sitting on big gains from an investment in rival Lucid Motors Inc.
The PIF and Lucid have been in talks about building a factory near the Red Sea city of Jeddah, people familiar with the matter told Bloomberg News in January. The following month, the carmaker reached an agreement to merge with a special-purpose acquisition company and go public.
The emergence of battery-powered cars has inspired a range of new-vehicle projects from startups to state-owned enterprises such as Turkey’s Togg, which plans to launch several EVs in the coming years. While Saudi Arabia has more resources to shower on a project of its own, any new automaker would face a broad range of competitors sprouting up around the globe.
Saudi Arabia aims to agree on deals this year or next to expand local manufacturing, the head of the kingdom’s wealth fund, Yasir Al-Rumayyan, said during a briefing in Riyadh on Jan. 26.
“Now we’re in the process of looking at electric appliances,” he said. “In relation to cars, there is more than one project that we’re now looking at, and they will be executed this year or next year at the latest.”
Saudi Arabia has hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker, according to people familiar with the matter.
The project is linked to existing plans to build up automotive infrastructure in the country and boost local manufacturing, said the people, who asked not to be identified because the deliberations aren’t public.
A spokesperson for Saudi Arabia’s sovereign-wealth fund said it is committed to stoking growth and diversifying the kingdom’s oil-reliant economy while declining to comment on specific projects.
The $400 billion Public Investment Fund has been active in the electric-vehicle space going back several years. It acquired a small stake in Tesla Inc. in 2018, and officials discussed supporting Elon Musk’s efforts to take the company private until the chief executive officer tweeted about his ambitions. The PIF sold almost all its Tesla shares before an epic rally that began in late 2019, though it’s now sitting on big gains from an investment in rival Lucid Motors Inc.
The PIF and Lucid have been in talks about building a factory near the Red Sea city of Jeddah, people familiar with the matter told Bloomberg News in January. The following month, the carmaker reached an agreement to merge with a special-purpose acquisition company and go public.
The emergence of battery-powered cars has inspired a range of new-vehicle projects from startups to state-owned enterprises such as Turkey’s Togg, which plans to launch several EVs in the coming years. While Saudi Arabia has more resources to shower on a project of its own, any new automaker would face a broad range of competitors sprouting up around the globe.
Saudi Arabia aims to agree on deals this year or next to expand local manufacturing, the head of the kingdom’s wealth fund, Yasir Al-Rumayyan, said during a briefing in Riyadh on Jan. 26.
“Now we’re in the process of looking at electric appliances,” he said. “In relation to cars, there is more than one project that we’re now looking at, and they will be executed this year or next year at the latest.”
Oil climbs to fresh 6-week high on bullish demand | Reuters
Oil climbs to fresh 6-week high on bullish demand | Reuters
Oil prices rose to fresh six-week highs on Thursday as strong U.S. economic data, a weak dollar and an expected recovery in demand outweighed concerns about higher COVID-19 cases in Brazil and India.
Brent LCOc1 futures rose $1.29, or 1.9%, to settle at $68.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.8%, to end at $65.01.
That put both benchmarks up for a third day in a row to their highest closes since March 15.
“Summer season is a synonym for driving season and drivers in the United States, China and the United Kingdom are about to start consuming more fuel, a development the market believes will make up for India’s COVID-19 downturn,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
He added that oil prices drew additional support from a weak dollar, which made “oil cheaper to buy internationally.”
Oil prices rose to fresh six-week highs on Thursday as strong U.S. economic data, a weak dollar and an expected recovery in demand outweighed concerns about higher COVID-19 cases in Brazil and India.
Brent LCOc1 futures rose $1.29, or 1.9%, to settle at $68.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.8%, to end at $65.01.
That put both benchmarks up for a third day in a row to their highest closes since March 15.
“Summer season is a synonym for driving season and drivers in the United States, China and the United Kingdom are about to start consuming more fuel, a development the market believes will make up for India’s COVID-19 downturn,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
He added that oil prices drew additional support from a weak dollar, which made “oil cheaper to buy internationally.”
#Qatar posts small surplus in Q1 as oil prices lift revenues | ZAWYA MENA Edition
Qatar posts small surplus in Q1 as oil prices lift revenues | ZAWYA MENA Edition
Qatar posted a 200 million riyals ($55 million) surplus in the first quarter this year, helped by a recovery in oil prices, the ministry of finance said on Thursday.
The tiny but rich Gulf state, the world's top liquefied natural gas (LNG) producer, saw total revenue of 45.2 billion riyals in the first three months of the year against 45 billion riyals in expenditure, the ministry said in a statement.
The economy shrank 3.7% last year due to the coronavirus crisis and weak oil demand, it said, but it expects real gross domestic product to grow 2.2% this year.
Qatar posted a 200 million riyals ($55 million) surplus in the first quarter this year, helped by a recovery in oil prices, the ministry of finance said on Thursday.
The tiny but rich Gulf state, the world's top liquefied natural gas (LNG) producer, saw total revenue of 45.2 billion riyals in the first three months of the year against 45 billion riyals in expenditure, the ministry said in a statement.
The economy shrank 3.7% last year due to the coronavirus crisis and weak oil demand, it said, but it expects real gross domestic product to grow 2.2% this year.
Oil Trades at Six-Week High With Demand Optimism Spurring Rally - Bloomberg
Oil Trades at Six-Week High With Demand Optimism Spurring Rally - Bloomberg
| PRICES |
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Oil rose above $65 a barrel in New York for the first time in more than six weeks as signs of strengthening demand in key markets offset concerns about a Covid-19 resurgence in some countries, especially India. New York City aims to fully reopen July 1, while U.K. road fuel sales are nearing last year’s summer levels. Austrian refiner OMV AG is expecting to boost runs later in the year and Repsol SA reported a “slight recovery” in demand. Consumption may also get a boost when China breaks for an extended holiday on Saturday, with mobility expected to climb to a record. Broader markets climbed on Thursday after the Federal Reserve strengthened its assessment on the U.S. economy and reaffirmed aggressive policy support.  |
Mideast Stocks: #Saudi bourse underperforms subdued Gulf markets | ZAWYA MENA Edition
Mideast Stocks: Saudi bourse underperforms subdued Gulf markets | ZAWYA MENA Edition
Most stock markets in the Gulf ended lower on Thursday, with the Saudi index underperforming, dragged down by losses in its financial shares.
Saudi Arabia's benchmark index .TASI dropped 1.1%, with Al Rajhi Bank 1120.SE and petrochemical firm Saudi Basic Industries 2010.SE both sliding 3%.
On Wednesday, the Saudi index registered sharp gains after Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax (VAT) to 15% was temporary.
The country tripled VAT to offset the impact of lower oil revenue on state finances in a move that shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index lost 0.6%, hit by a 0.8% fall in blue-chip developer Emaar Properties and a 2.3% slide in Aramex as the logistics firm went ex-dividend.
In Abu Dhabi, the index fell 0.6%, pressured by a 1% fall in First Abu Dhabi Bank, the country's largest lender, while telecoms giant Etisalat was down 0.6%.
"Strong corporate earnings from companies in the first quarter have helped drive gains in the past few days. However, with some analysts pointing to revenues falling short of pre-pandemic levels, there are concerns that the companies left to report their results might also not perform so optimally," said Michael Stark, research analyst at Exness.
"Investors now appear to be cashing out with the market on a high. Extended sell-offs could lead to an erosion of the gains made over the past few days."
In Qatar, the benchmark index eased 0.3%, with petrochemical maker Industrie Qatar losing 0.9%.
Elsewhere, telecoms firm Ooredoo, which retreated about 2% in early trade following a decline in first-quarter earnings, ended flat.
Most stock markets in the Gulf ended lower on Thursday, with the Saudi index underperforming, dragged down by losses in its financial shares.
Saudi Arabia's benchmark index .TASI dropped 1.1%, with Al Rajhi Bank 1120.SE and petrochemical firm Saudi Basic Industries 2010.SE both sliding 3%.
On Wednesday, the Saudi index registered sharp gains after Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax (VAT) to 15% was temporary.
The country tripled VAT to offset the impact of lower oil revenue on state finances in a move that shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index lost 0.6%, hit by a 0.8% fall in blue-chip developer Emaar Properties and a 2.3% slide in Aramex as the logistics firm went ex-dividend.
In Abu Dhabi, the index fell 0.6%, pressured by a 1% fall in First Abu Dhabi Bank, the country's largest lender, while telecoms giant Etisalat was down 0.6%.
"Strong corporate earnings from companies in the first quarter have helped drive gains in the past few days. However, with some analysts pointing to revenues falling short of pre-pandemic levels, there are concerns that the companies left to report their results might also not perform so optimally," said Michael Stark, research analyst at Exness.
"Investors now appear to be cashing out with the market on a high. Extended sell-offs could lead to an erosion of the gains made over the past few days."
In Qatar, the benchmark index eased 0.3%, with petrochemical maker Industrie Qatar losing 0.9%.
Elsewhere, telecoms firm Ooredoo, which retreated about 2% in early trade following a decline in first-quarter earnings, ended flat.
Nasdaq #Dubai- listed Depa's 2020 revenues hit by Arabtec insolvency, COVID-19 disruptions | Markets – Gulf News
Nasdaq Dubai- listed Depa's 2020 revenues hit by Arabtec insolvency, COVID-19 disruptions | Markets – Gulf News
The Dubai-based interior fitouts company Depa saw 2020 revenues drop to Dh599.7 million, from Dh998.9 million a year ago, with COVID-19 led disruptions being the main cause.
Depa was also impacted by the insolvency proceedings at UAE’s biggest construction company Arabtec, with which it had a longstanding project relationship. The company's overall project backlog is Dh1.50 billion, while current net debt (excluding restricted cash) is at Dh52.1 million.
“Depa has responded, undertaking a strategic review and implementing the resultant transformation programme,” said Kevin Lewis, CEO of the Nasdaq Dubai listed entity. “This transformation programme has seen the group reduce its fixed cost base by more than Dh160 million; in addition to commencing a number of non-core asset disposals, including its highly successful Vedder business in Germany.
“The end result of Depa’s transformation programme will be a more flexible cost base better suited to the prevailing market environment and an improved liquidity position.”
The Dubai-based interior fitouts company Depa saw 2020 revenues drop to Dh599.7 million, from Dh998.9 million a year ago, with COVID-19 led disruptions being the main cause.
Depa was also impacted by the insolvency proceedings at UAE’s biggest construction company Arabtec, with which it had a longstanding project relationship. The company's overall project backlog is Dh1.50 billion, while current net debt (excluding restricted cash) is at Dh52.1 million.
“Depa has responded, undertaking a strategic review and implementing the resultant transformation programme,” said Kevin Lewis, CEO of the Nasdaq Dubai listed entity. “This transformation programme has seen the group reduce its fixed cost base by more than Dh160 million; in addition to commencing a number of non-core asset disposals, including its highly successful Vedder business in Germany.
“The end result of Depa’s transformation programme will be a more flexible cost base better suited to the prevailing market environment and an improved liquidity position.”
#Dubai Luxury Home Sales Boom As Rich Europeans Escape Covid Lockdowns - Bloomberg
Dubai Luxury Home Sales Boom As Rich Europeans Escape Covid Lockdowns - Bloomberg
The wealthiest home buyers fleeing virus lockdowns for Dubai are still finding bargains aplenty, turning March into the busiest month ever for the emirate’s top-end residential properties.
A record 84 properties, each worth 10 million dirhams ($2.7 million) or more, changed hands last month, according to data from real estate consultant Property Monitor. In total, Dubai’s priciest homes fetched 1.7 billion dirhams in March.
The luxury end of the market has come alive in a city that became a haven for wealthy Europeans escaping repeated lockdowns at home and for others drawn by the ease of getting vaccinated from Covid-19. The Middle East’s business and tourism hub provided an additional lure after a property downturn that started six years ago shaved more than a third off values.
“We’ve seen sentiment shift quite significantly and prices are increasing across the board now,” said Taimur Khan, head of research at Knight Frank in Dubai. “On the top end of the market, it’s mostly European money from investors seeking assets in dollar-linked economies.”
The United Arab Emirates, of which Dubai is a part, introduced new visas for tourists and approved a new remote work visa that enables employees from all over the world to live and operate from the UAE. Buying a property is also one of the fastest ways of getting a residency permit in Dubai.
“Dubai is being seen as a place that’s relatively safe and less restrictive than many others,” said Zhann Jochinke, chief operating officer at Property Monitor. “Government initiatives aiming to drive more investments and people into Dubai are also helping improve sentiment on the long term prospects for the market.”
Dubai’s second-most expensive property was also sold in March. One 100 Palm, a mansion on the artificial island of Palm Jumeirah fetched 111.25 million dirhams. The buyer is a Swiss family that resides in Monaco and intends to use the villa for short-term rentals, according to Luxhabitat Sotheby’s International Realty, which was one of the brokers involved in the deal.
On average, home prices climbed 7.5% since November, with gains of 10% to 15% in established and sought-after locations, according to Property Monitor.
“We had a fairly hefty correction and that’s now working its way out at the top end of the market,” Khan said. “But given the rate of change in prices in some of these markets we have to ask if this rate is really sustainable.”
The wealthiest home buyers fleeing virus lockdowns for Dubai are still finding bargains aplenty, turning March into the busiest month ever for the emirate’s top-end residential properties.
A record 84 properties, each worth 10 million dirhams ($2.7 million) or more, changed hands last month, according to data from real estate consultant Property Monitor. In total, Dubai’s priciest homes fetched 1.7 billion dirhams in March.
The luxury end of the market has come alive in a city that became a haven for wealthy Europeans escaping repeated lockdowns at home and for others drawn by the ease of getting vaccinated from Covid-19. The Middle East’s business and tourism hub provided an additional lure after a property downturn that started six years ago shaved more than a third off values.
“We’ve seen sentiment shift quite significantly and prices are increasing across the board now,” said Taimur Khan, head of research at Knight Frank in Dubai. “On the top end of the market, it’s mostly European money from investors seeking assets in dollar-linked economies.”
The United Arab Emirates, of which Dubai is a part, introduced new visas for tourists and approved a new remote work visa that enables employees from all over the world to live and operate from the UAE. Buying a property is also one of the fastest ways of getting a residency permit in Dubai.
“Dubai is being seen as a place that’s relatively safe and less restrictive than many others,” said Zhann Jochinke, chief operating officer at Property Monitor. “Government initiatives aiming to drive more investments and people into Dubai are also helping improve sentiment on the long term prospects for the market.”
Dubai’s second-most expensive property was also sold in March. One 100 Palm, a mansion on the artificial island of Palm Jumeirah fetched 111.25 million dirhams. The buyer is a Swiss family that resides in Monaco and intends to use the villa for short-term rentals, according to Luxhabitat Sotheby’s International Realty, which was one of the brokers involved in the deal.
On average, home prices climbed 7.5% since November, with gains of 10% to 15% in established and sought-after locations, according to Property Monitor.
- Residential properties priced at 10 million dirhams or more made up 2.5% of all homes sold in Dubai in March, compared with 1.5% the previous month.
- Residential prices climbed 1.3% in Dubai in March, the first annual increase since 2015. During the same month last year, they slumped an annual 9.8%.
- Transactions for properties in all price ranges in March were at a 10-year high.
“We had a fairly hefty correction and that’s now working its way out at the top end of the market,” Khan said. “But given the rate of change in prices in some of these markets we have to ask if this rate is really sustainable.”
Mukesh Ambani Doesn't Have Much Need for a 1% Stake in #Saudi Aramco - Bloomberg
Mukesh Ambani Doesn't Have Much Need for a 1% Stake in Saudi Aramco - Bloomberg
Could one of the energy industry’s longest-running on-again, off-again romances be catching fire again? Saudi Arabian Crown Prince Mohammed Bin Salman seems to think so.
“There are discussions happening right now about a 1% acquisition by one of the leading energy companies in the world” in state-owned Saudi Arabian Oil Co., he said in a local television interview Tuesday.
Prince Mohammed didn’t disclose which company might make the investment, but you don’t have to be a Jane Austen protagonist to work out the most likely partner. Reliance Industries Ltd., owner of the world’s biggest oil refinery, has been dancing the quadrille with Saudi Aramco for nearly two years. At current prices, 1% of Aramco would be worth about $19 billion — not far off the $15 billion price tag put on 20% of Reliance’s energy division, at the time the Saudi company first took an interest in buying a stake in 2019.
A tie-up with Reliance is exactly what Aramco has in mind, the Financial Times reported Wednesday, citing people familiar with the matter. The two companies would initially exchange shares, with cash payments from the Saudis over subsequent years making up the balance of the transaction, the paper reported.
Could one of the energy industry’s longest-running on-again, off-again romances be catching fire again? Saudi Arabian Crown Prince Mohammed Bin Salman seems to think so.
“There are discussions happening right now about a 1% acquisition by one of the leading energy companies in the world” in state-owned Saudi Arabian Oil Co., he said in a local television interview Tuesday.
Prince Mohammed didn’t disclose which company might make the investment, but you don’t have to be a Jane Austen protagonist to work out the most likely partner. Reliance Industries Ltd., owner of the world’s biggest oil refinery, has been dancing the quadrille with Saudi Aramco for nearly two years. At current prices, 1% of Aramco would be worth about $19 billion — not far off the $15 billion price tag put on 20% of Reliance’s energy division, at the time the Saudi company first took an interest in buying a stake in 2019.
A tie-up with Reliance is exactly what Aramco has in mind, the Financial Times reported Wednesday, citing people familiar with the matter. The two companies would initially exchange shares, with cash payments from the Saudis over subsequent years making up the balance of the transaction, the paper reported.
Amanat's CEO on 350M AED Sale of Taaleem Stake - Bloomberg
Amanat's CEO on 350M AED Sale of Taaleem Stake - Bloomberg
Mohamad Hamade, CEO of Amanat, the Dubai-based healthcare and education investment firm, discusses selling its stake in Taaleem Holdings, one of the United Arab Emirates' largest education providers. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
EXCLUSIVE Major Chinese investors in talks to take Aramco stake -sources | Reuters
EXCLUSIVE Major Chinese investors in talks to take Aramco stake -sources | Reuters
Major Chinese investors are in talks to buy a stake in Saudi Aramco (2222.SE), several sources told Reuters on Wednesday, as Saudi Arabia's state oil firm prepares to sell another slice of its business to international investors.
Saudi Arabia was in discussions to sell 1% of Aramco to a leading global energy company and could sell further shares including to international investors within the next year or two, Crown Prince Mohammed bin Salman said in televised remarks on Tuesday. read more
A stake of 1% would equate to around $19 billion based on Aramco's current market capitalisation.
Sovereign wealth fund China Investment Corporation (CIC) (CIC.UL) was among those that could invest, two sources told Reuters.
Major Chinese investors are in talks to buy a stake in Saudi Aramco (2222.SE), several sources told Reuters on Wednesday, as Saudi Arabia's state oil firm prepares to sell another slice of its business to international investors.
Saudi Arabia was in discussions to sell 1% of Aramco to a leading global energy company and could sell further shares including to international investors within the next year or two, Crown Prince Mohammed bin Salman said in televised remarks on Tuesday. read more
A stake of 1% would equate to around $19 billion based on Aramco's current market capitalisation.
Sovereign wealth fund China Investment Corporation (CIC) (CIC.UL) was among those that could invest, two sources told Reuters.
Chemicals Maker Sabic’s Profit Surges as Global Economy Reopens - Bloomberg
Chemicals Maker Sabic’s Profit Surges as Global Economy Reopens - Bloomberg
Chemicals maker Saudi Basic Industries Corp. returned to a first-quarter profit as the reopening of the global economy led to higher demand for its products.
Net income was 4.86 billion riyals ($1.3 billion) compared with a loss of 1.05 billion a year ago, and more than double the level of the previous three-month period.
“The first quarter saw rising oil prices and a tight supply and demand balance,” said Chief Executive Officer Yousef Al-Benyan. “These elements, combined with growing demand as the global economy continues to recover, resulted in higher prices and margins for most of our products.”
Revenue rose 24% to 37.5 billion riyals, the Riyadh-based company, controlled by Saudi Aramco, said Thursday. Margins are expected to remain at similar levels in the second quarter.
Chemicals maker Saudi Basic Industries Corp. returned to a first-quarter profit as the reopening of the global economy led to higher demand for its products.
Net income was 4.86 billion riyals ($1.3 billion) compared with a loss of 1.05 billion a year ago, and more than double the level of the previous three-month period.
“The first quarter saw rising oil prices and a tight supply and demand balance,” said Chief Executive Officer Yousef Al-Benyan. “These elements, combined with growing demand as the global economy continues to recover, resulted in higher prices and margins for most of our products.”
Revenue rose 24% to 37.5 billion riyals, the Riyadh-based company, controlled by Saudi Aramco, said Thursday. Margins are expected to remain at similar levels in the second quarter.
Oil prices rise, bullish demand outlook offsets India concerns | Reuters
Oil prices rise, bullish demand outlook offsets India concerns | Reuters
Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts of recovering demand outweighed concerns about the impact of rising COVID-19 cases in Brazil, India and Japan.
Brent rose 49 cents, or 0.7%, to $67.76 a barrel by 0843 GMT, and U.S. West Texas Intermediate crude was up 43 cents, or 0.7%, at $64.29 a barrel.
This is the third consecutive day that the both contracts are rising.
"The performance of the past few days demonstrates the unbroken faith of the market in healthy economic and demand recovery," Tamas Varga, analyst at PVM Oil associates said.
"It also implies that the perilous and devastating COVID nightmare engulfing in India, Japan and Turkey, amongst others, is not expected to have a long-lasting impact on economic expansion."
Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts of recovering demand outweighed concerns about the impact of rising COVID-19 cases in Brazil, India and Japan.
Brent rose 49 cents, or 0.7%, to $67.76 a barrel by 0843 GMT, and U.S. West Texas Intermediate crude was up 43 cents, or 0.7%, at $64.29 a barrel.
This is the third consecutive day that the both contracts are rising.
"The performance of the past few days demonstrates the unbroken faith of the market in healthy economic and demand recovery," Tamas Varga, analyst at PVM Oil associates said.
"It also implies that the perilous and devastating COVID nightmare engulfing in India, Japan and Turkey, amongst others, is not expected to have a long-lasting impact on economic expansion."
MIDEAST STOCKS #Saudi leads major Gulf markets lower; #Dubai gains | Reuters
MIDEAST STOCKS Saudi leads major Gulf markets lower; Dubai gains | Reuters
Most major stock markets in the Gulf fell on Thursday, with Saudi shares leading the declines, although the Dubai bourse bucked the trend on support from property stocks.
Saudi Arabia's benchmark index (.TASI) dropped 1%, dragged down by a 2.2% fall in Al Rajhi Bank (1120.SE) and a 3.1% slide in the Saudi National Bank (1180.SE), the kingdom's largest lender.
On Wednesday, the Saudi index registered sharp gains after the country's Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index (.DFMGI) rose 0.3%, supported by a 1.1% gain in blue-chip developer Emaar Properties (EMAR.DU).
However, logistic firm Aramex (ARMX.DU) retreated 2.3%, as the stock went ex-dividend.
The Abu Dhabi index (.ADI) eased 0.3%, with aquaculture firm International Holding (IHC.AD) losing over 2%, while First Abu Dhabi Bank (FAB.AD) was down 0.4%.
But, Dana Gas (DANA.AD) advanced 2.2%. In the previous session, the energy firm fell when it said that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, has requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt.
Back in Saudi Arabia, Sahara International Petrochemical (2310.SE) jumped 7.6% after it posted a quarterly net profit.
In Qatar, the benchmark (.QSI) fell 0.3%, as most of the stocks on the index were in red including telecoms firm Ooredoo (ORDS.QA), which retreated about 2% following a decline in first-quarter earnings.
Most major stock markets in the Gulf fell on Thursday, with Saudi shares leading the declines, although the Dubai bourse bucked the trend on support from property stocks.
Saudi Arabia's benchmark index (.TASI) dropped 1%, dragged down by a 2.2% fall in Al Rajhi Bank (1120.SE) and a 3.1% slide in the Saudi National Bank (1180.SE), the kingdom's largest lender.
On Wednesday, the Saudi index registered sharp gains after the country's Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index (.DFMGI) rose 0.3%, supported by a 1.1% gain in blue-chip developer Emaar Properties (EMAR.DU).
However, logistic firm Aramex (ARMX.DU) retreated 2.3%, as the stock went ex-dividend.
The Abu Dhabi index (.ADI) eased 0.3%, with aquaculture firm International Holding (IHC.AD) losing over 2%, while First Abu Dhabi Bank (FAB.AD) was down 0.4%.
But, Dana Gas (DANA.AD) advanced 2.2%. In the previous session, the energy firm fell when it said that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, has requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt.
Back in Saudi Arabia, Sahara International Petrochemical (2310.SE) jumped 7.6% after it posted a quarterly net profit.
In Qatar, the benchmark (.QSI) fell 0.3%, as most of the stocks on the index were in red including telecoms firm Ooredoo (ORDS.QA), which retreated about 2% following a decline in first-quarter earnings.